Averaging fees out over a year... what happens if child leaves part way through?

[lceyork]

It's possible that in future I may need to charge a parent their fees (full + retainer) on a monthly basis averaged out over a year as she is a teacher and it would be great all round to know the costs will be the same each month.
So, lets assume the contract starts in September and they leave my care, (maybe a couple of years later) in march say (half way through the year). Clearly these six months are mostly childminding as the Easter and summer holiday hours aren't included. Would anybody be cheeky enough to work out the real cost of the minding and charge extra when they leave me or just say "that's the way the cookie crumbles".
Sorry I'm a bit of a worrier and also I think I would feel a bit used.
Not sure if this makes sense to anyone.
Can anybody wise me up?
cheers

[pillows]

hi yes i do it this way too ,and i have just had to do the same thing teacher will be leaving 4 months prior to the anniversary iyswim.. i have worked out what childcare i have provided over that time and deducted what will be payable and this is what you are owed hope this makes sense as she not leaving until end of summer term i have provisionally worked it out for mum and she is absolutely fine about it . i always make it clear from the onset that this might be the case or in certain situations you might find you owe a little but that is only worse if they maybe started may/ june and then you have all the summer hols

[sarah707]

I would write something into the contract to explain that there might be fees owing from either side at the end.

Then say how you intend to repay if you have been overpaid and the way you want parents to pay you - cash, money into your bank etc.

I think by raising the issue at the start of the contract it will make things much easier at the end especially if there are any problems.

Good luck!

[TheBTeam]

I have only ever done one like this and the only way i could do it was to keep a record in my accounts of what she actually paid and then another separate record of what she actually owed each week and keep a running total for both so when the arrangement ended I knew at a glance who owed who the money.

[Bridey]

I do most of my contracts this way as most of my parents have tax credits and its easier for them. As I work with afterschoolers it also means I have an income in the holidays

I keep a record of the actual cost of care each week against what has been paid, give the parents a statement every few months and, yes, when they leave I do check whether they owe me or I owe them.

On the contract I only put their actual hourly fee. I then write a letter giving them their 'estimated' monthly average charge and explain at that point what would happen if they were to leave before the year end.

[The Juggler]

I give termtime parents the option to pay over 11 months Sept-July (where they are more or less paying for care received) or over 12 months.

If they choose the 12 month option then I make it clear that should they leave before 31st August I will calculate actual care received and those additional fees will be due alongside the final payment. I get them to sign to say they agree to this.

[lceyork]

Ah thank you for all your replies. This all makes perfect sense. I will keep a separate tally of actual hours used and compare at the end of the contract. And of course explain it all at the start. Perfect!

[Rubybubbles]

I can't run mine like this as I work with lots of RAF families who move around! I find it easier knowing that what I have been paid, is what I have worked!

I can see the benifits of doing it that way though, oh and I am full time anyway doh